Let’s start off with a little story about you, your friend, and an income snowball.
Both of you are smart, motivated individuals who want to be financially free.
Now, you both want to save up money and retire as fast as you can but aren’t sure how to go about it.
Your friend decides he can live off a hair thin budget and is going to put $5,000 / month into a savings account.
You, on the other hand, are going a different route.
You’re only going to put in $10 / week, but it’s going to be invested and you’re going to earn some side income on top of that. Combined, you’ll get a 10% weekly compound growth.
That first month, things aren’t looking so good. Your friend has $5,000 saved and you’ve got a measly $51.
The second month is still terrible. Your friend has now saved $10,000 and you’re at a whopping $125.
You’re starting to reconsider this method a little bit, aren’t you?
Month 3 and your friend has his savings up to $15,000 and yours sits at $235.
After an entire year, his savings are $60,000 while you only have $15,541. Financial freedom is looking closer to him than it is for you.
Finally, at month 16, you’ve surpassed him. Your bank statement is reading $86,672 while he is showing $80,000.
But then something amazing happens.
By the end of month 17, you’ve made $40,000 in one month and you’re savings are up to $127,000 while your buddy living on the tiny budget only has $85,000.
At the end of month 18, you’ve made $59,000 and have racked up $186,100 in savings.
Fast forward a couple months to the end of your second year and you’ve made and saved $2.2 Million dollars! You, my friend, are a millionaire!
Your friend, who has only saved up $120,000 is dumbfounded. He’s wondering what he’s been missing out on this entire time.
What he’s missed out on is an income snowball.
How an Income Snowball Works
Income snowballs start out small, just like your savings in the story above. They’re built from the little bit of money that we can spare from our day job.
The mountain you roll the snowball down is investing. Specifically, dividend investing. Dividend investing is the best form of passive income because it doesn’t require any time or money besides the up-front investment.
From that initial income snowball rolling down the mountain, you start collecting dividend payments from stocks. This adds to your snowball, your income snowball gets bigger, and you collect even more in dividends.
Say you want to add more money from our day job? You’re able to add to the snowball without even stopping it, pack on a little more, and let it keep rolling.
The larger a snowball gets the more snow it’s able to pick up. The longer we let the snowball roll, the bigger it’s going to become and the more snow it’s going to grab. The bigger it gets, the longer it rolls, the faster it grows.
Pretty soon you’re earning thousands per month from dividend payments, adding that to your income snowball, and making more the next month.
How the Rich Get Richer
Warren Buffett, Bill Gates, Richard Branson, Oprah…all of them have income snowballs.
Warren Buffett earns an estimated $1 Million PER WEEK just from dividend payments.
They’re able to get mega rich because they have a passive income snowball rolling down the mountain.
All of those people have built a business that brings in income without directly working. They’re earning money while they sleep.
As we know from the example above, earning and saving money doesn’t necessarily make us a whole lot richer.
The rich don’t spend all that income. That passive income gets added to the snowball. The money gets put to work earning more.
They’ve built themselves a passive income snowball. One that continues to grow bigger and bigger, faster and faster.
How You Can Build an Income Snowball
Hopefully, I’ve shown how awesome an income snowball can be and you’re wanting to start one yourself.
That’s what this website is all about: building an income snowball to carry you on to financial freedom.
You can even start earning passive income today.